Shares of pharmaceutical firm Wyeth could receive quite a boost today. The company reported that 2 Phase III clinical trials showed its hormone treatment significantly reduced the number and severity of hot flashes in postmenopausal women by up to 80%. The treatment, known as bazedoxifene/conjugated estrogens, also improved symptoms such as vaginal dryness and atrophy in women participating in the study. Wyeth plans to use the data to submit a Food and Drug Administration marketing application in the second quarter of 2008.
Pessimism is scarce for WYE shares among short sellers and options players, but Wall Street remains firmly undecided toward the equity. According to Zacks, 12 of the 16 analysts covering WYE rate the shares a hold. Any upgrades stemming from today's report could add fuel to the stock's fledgling rally.
Speaking of which, WYE is attempting to break out of a sideways channel between the 44 level and the 48 level. The stock gained more than 2% on Friday to challenge the upper rail of this channel, but was held in check. A breakout to the upside could signal an extension of Friday's rally.